TriNet Group, Inc. reported a modest increase in total revenues for the first quarter of 2025, reaching $1.292 billion, a 1% rise compared to $1.282 billion in the same period of 2024. This growth was primarily driven by a 1% increase in insurance service revenues, which amounted to $1.065 billion, while professional service revenues saw a slight decline of 2% to $209 million. The company's net income decreased by 7% to $85 million, down from $91 million in the prior year, reflecting rising insurance costs that outpaced revenue growth.
The company's operational metrics showed a decrease in both average and total worksite employees (WSEs), with average WSEs falling by 2% to 340,744 and total WSEs declining by 3% to 339,625. This decline was attributed to client attrition and reduced hiring in key verticals such as Technology and Professional Services. The insurance cost ratio (ICR) increased to 88%, up from 86% in the previous year, driven by higher medical service utilization and increased costs for specialty drugs.
Strategically, TriNet has been focusing on restructuring its operations to enhance efficiency and effectiveness. This includes the sale of TriNet Clarus R+D and plans to establish a new corporate center in Atlanta, Georgia, over the next five years. The company has also demonstrated disciplined expense management, with total operating expenses decreasing by 6% to $221 million, largely due to a reduction in headcount, which now stands at approximately 3,400 employees.
Looking ahead, TriNet remains optimistic about its growth potential, emphasizing its commitment to diversifying service offerings and improving client experience. The company plans to continue investing in technology and operational improvements to attract new clients and manage client attrition effectively. Additionally, TriNet has declared a dividend of $0.275 per share, reflecting a 10% increase, which will be paid in April 2025, signaling confidence in its financial stability despite current challenges.
About TRINET GROUP, INC.
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